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Hemorrhagic Fever Outbreak Puts Pressure On Cyprus Livestock Sector

Rapid Onset Of A Livestock Emergency

Cyprus’ livestock sector is facing growing pressure following the spread of hemorrhagic fever across several free-range farming areas. Authorities report 11 affected facilities and around 13,000 animals considered at risk in regions including Livadia, Oroklini, Troulloi, and Aradippou.

Estimated compensation costs have reached approximately €4.5 million, covering livestock losses as well as related products such as milk and reproductive material.

Intensified Epidemiological Investigations

Veterinary Services have launched extensive epidemiological investigations aimed at identifying the source and transmission pathways of the outbreak. Law enforcement authorities are also assisting in inquiries related to possible delays in reporting initial cases.

Officials say early notification remains critical for limiting the spread of animal diseases and reducing economic impact on producers.

Strict Emergency Measures Enforced

Following confirmation of the outbreak on February 20 in a cattle unit in Livadia, the government activated its Emergency Action Plan under Regulation 2020/687. Authorities believe the virus may have been circulating earlier in nearby areas.

Key measures include:

  • Checkpoint Controls And Disinfection
    Police and veterinary teams have established control points and disinfection units in affected zones, including Aradippou, Livadia, Keleia, Troulloi, and Oroklini.

  • Movement Restrictions
    Transportation of cattle, sheep, goats, pigs, and related feed is restricted without special authorization.

  • Product Control Measures
    Milk from affected facilities is being removed from the supply chain, while controlled disposal procedures for infected animals are underway.

  • Hunting And Outdoor Activity Restrictions
    Hunting and dog training activities have been suspended in affected areas to reduce environmental transmission risks.

Political Pressure And Industry Concerns

The outbreak has intensified debate within the Parliamentary Committee on Agriculture, where lawmakers reviewed earlier containment measures introduced in late 2025 after initial suspicions of disease activity.

While laboratory tests conducted in nearby zones previously returned negative results, farmers continue to express concern over economic losses and uncertainty. Authorities say inspections and biosecurity controls will remain in place as monitoring continues.

International Veterinary Cooperation And EU Response

Amid the grim scenario, the EU veterinarian team from Brussels (EUVET) offers a global perspective. With the imminent arrival of 10,000 vaccine doses today from a reserve of 500,000 doses sent to occupied areas, and another 10,000 expected next week, the rollout will be managed under the expertise of EUVET, who remains on the island until Friday.

Notably, although only 11 premises have so far reported contamination, early incidents in a cattle farm and two large sheep stations in the Larnaca district had already captured international attention. In light of this outbreak, the European Commission is set to authorize measures, including a decisive culling of animals at affected farms, destruction of animal products, and comprehensive facility disinfection.

Export Challenges And Future Precautions

Following the outbreak, the World Organisation for Animal Health (WOAH) suspended Cyprus’ disease-free status, temporarily affecting exports of susceptible live animals and certain untreated animal products.

EU guidelines require strict controls within designated restriction zones, including movement monitoring, facility sanitation, and regulated handling of animal products. Authorities say dairy products from affected farms must be managed under controlled conditions to ensure safety.

Moving Forward

Additional measures are expected in the coming days, including expanded vaccination efforts and continued surveillance. Officials say coordination between national authorities, veterinary experts, and EU partners will be central to limiting the spread of the disease and stabilizing the livestock sector.

Cyprus Central Bank Reports Sharp Decline In New Loans For January 2026

Overview Of Lending Trends

The Central Bank of Cyprus (CBC) reported a marked downturn in total net new loans for January 2026. The figures reveal a decline of €377.7 million in net new loans compared with the previous month, reflecting broader adjustments in both consumer and housing credit markets.

Detailed Lending Activity

Net new loans in January totaled €247.3 million, based on €495.9 million in total new lending. In December 2025, net new loans reached €625.0 million from €986.9 million in total lending. Changes were recorded across several credit categories. Net new consumer loans increased slightly to €18.9 million from €17.2 million in December. Housing loans declined to €95.7 million from €135.4 million in the previous month.

Interest Rate Movements

Interest rates for both consumer and housing loans declined slightly during the period. Consumer loan rates fell to 7.20% from 7.22%, while housing loan rates decreased to 3.70% from 3.78%. Deposit rates showed limited changes. Household term deposits remained at 1.20%, while deposits from non-financial corporations increased to 1.34% from 1.27%.

Comparative European Context

In comparison with other euro area countries, lending rates in Cyprus are close to the median for outstanding loan balances. Margins for households are around 0%, while margins for non-financial corporations stand at approximately 0.4%. The transmission of monetary policy in Cyprus broadly follows developments in the wider euro area, particularly during periods of monetary tightening or easing. However, the pass-through of rate changes to new loans, especially those issued to non-financial corporations, appears lower than in some other euro area markets.

Shifts In Borrower Behavior And Market Dynamics

The CBC report also highlights changes in borrower preferences regarding interest rate structures. The share of new housing loans with variable interest rates has declined from nearly 100% in early 2022 to 11.6%. Fixed-rate loans have become more common in new housing lending, although many of these products later transition to variable rates.

Banking Liquidity And Deposit Rates

In addition to lending trends, the Central Bank of Cyprus noted that deposit rates in Cyprus remain among the lowest in the euro area. High liquidity levels within the banking system contribute to this trend. Cypriot banks reported a liquidity coverage ratio of 319% in December 2025, compared with a euro area median of 192% and an EU average of 161%. These liquidity levels influence the pricing of deposits in the domestic market. Changes in policy interest rates have also shown limited pass-through to new deposits, reflecting the structure of Cyprus’s relatively small banking sector. The CBC report highlights ongoing developments in both lending and deposit conditions within the country’s banking system as economic conditions and borrowing preferences continue to evolve.

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